Great Falls ........................................................406-771-0007

Robert F. James Civil Lit

Kevin C. Meek Civil Lit

MISSOURI – MONTANA

LIT
IGAT
ION

Legal Department

SECRETS TO EFFICIENCY

Outside and Inside Spending
as a Percentage of Company
Revenue

This metric is interesting to track
because it calculates the entire
cost of your legal department, both
internally and externally, rather
than just on the outside legal spend.

This is a more accurate measure of
a reduction in legal costs than the
absolute legal spend in dollars—
legal spend could go up in a given
year and still represent a reduction
in legal spend as a percentage of
company revenue. Reducing this
metric over time would be a powerful
selling point to stakeholders looking
for proof of the value that the legal
department provides. Second,
tracking this percentage over time
helps a legal department find the
ideal mix of in-house counsel and
outside counsel that provides the
greatest value to the company.